Measure of Oil & Gas Project Costs Reaches New High, but Inflation … - Business Wire (press release)(Oil and Gas News)

HOUSTON–(BUSINESS WIRE)–The dramatic cost surge in the oil and gas industry continues, but the rate of growth shows some signs of slowing, according to the latest update of the IHS/CERA Upstream Capital Costs Index (UCCI) released today. The UCCI, a key measure of cost inflation for oil and gas projects, reports that costs climbed seven percent to 179 points during the six months ending March 31, 2007. Of the nine primary drivers of project capital development costs tracked by CERA on a global basis, all are continuing to respond to the high level of oil and gas activity; while in some regional markets, there has been a downturn for specific items such as rigs. The IHS/CERA UCCI tracks the costs of equipment, facilities, construction materials, and personnel used in a geographically diversified portfolio of more than two dozen onshore and offshore oil and gas development projects. read more

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